In a emailed note released early this morning, Standard & Poor's analysts said that they expect auto-related ABS issuance to continue to track vehicle sales for the remainder of 2012.
Annual sales topped 14 million units in 2012, analysts pointed out. Meanwhile, they consider both strong used-car prices and improving consumer fundamentals as positive for the auto loan/lease ABS sector.
However, analysts said there remains credit risks in the asset class, which include easing auto loan underwriting and a changing competitive landscape for issuers.
Year-to-date U.S. auto-related ABS issuance is at $40 billion, analysts said, citing Bloomberg. This makes the asset class the largest U.S. structured finance sector this year, analysts stated.